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Fast-moving markets are a lot like rapids: they are unpredictable and difficult to navigate. For investors and business leaders, the challenge is knowing where to allocate resources to ensure sustainable growth. One wrong move and your company could collapse.
Global economic volatility dominated 2023, characterized by trade tensions, slowing growth and political instability. Despite this, the United States is expected to experience slower growth in 2024 due to rising debt and interest rates, but is expected to rebound in 2025 as inflation and rates normalize. US consumer spending, strong in 2023, is expected to slow in 2024 as debt rises, but is expected to recover as inflation and interest rates decline. Business investment slowed due to higher rates, while residential investment saw a temporary increase due to strong demand.
However, a significant improvement is unlikely until rates fall. Government spending, which boosted the economy through infrastructure projects in 2023, is expected to slow in the coming years due to political uncertainties. A tight job market, driven by retiring baby boomers, is expected to remain resilient despite the economic slowdown, preventing a recession and boosting growth next year. Inflation is expected to reach the Fed’s 2% target by the third quarter of 2024, triggering interest rate cuts starting in June. Our basic economic forecast for the United States for 2024 can be summarized by the number 2024: 2% growth, zero recessions, 2% inflation, and unemployment holding at around 4%. However, there are clearly risks that could divert us from this path.
As the CEO of a growing photonics company, monitoring market trends and identifying promising industries is one of the core functions of my job. This year I have identified four key sectors in which we as tec5USA have significant knowledge – the semiconductor market with a focus on artificial intelligence (AI), food, healthcare, pharmaceuticals and biotechnology – which offer intrepid investors a myriad of opportunities .
Related: 5 Sectors Investors Are Bullish on Despite the Global Recession
The smart choice
Artificial intelligence is on many people’s minds, and for good reason. It is revolutionizing industries at all levels because it makes everyone’s life much easier. On a recent business trip to San Francisco, I saw more autonomous (driverless) Waymo vehicles on the road than on previous visits, with neither a driver nor front-seat passengers on board.
There’s a lot going on behind the scenes of AI technology, especially when it comes to specialized hardware. GPUs (graphics processing units) require HBM (high-bandwidth memory), which, in turn, is driving the growth of memory chips this year. Prominent players in this space – including Nvidia, the clear market leader – include AMD, Alphabet (Google), Intel and IBM.
Food for thought
United Nations projections indicate that the world’s population will reach a staggering 9.8 billion by 2050, with much of the growth expected in developing countries in sub-Saharan Africa and South Asia. A growing population means a greater demand for food. Clearing land for animal farming is no longer a viable option considering the deleterious environmental impact. This is where cell-grown meat sources, plant-based options, and alternative foods, like algae, come into play. Companies including Switzerland’s Nestlé (one of the world’s largest), Tyson, Kellogg’s, General Mills and Hormel have entered the fray.
Pet food manufacturing, a related market segment, is also experiencing robust growth. As consumers increasingly make healthy food choices for themselves, they demand the same high quality for their beloved pets. Similar methods of producing food for people apply to pet food, and many of the same companies, such as Mars Petcare, Nestlé Purina, and Hills Petcare, are profiting from this thriving market.
Related: This deep-tech company is positioned to lead the cultured meat production revolution
A welcome shot in the arm
The era of advanced diagnostics has begun and healthcare professionals have at their fingertips a series of cutting-edge tools that were not available until a few years ago. One notable innovation is optical coherence tomography – a technology similar to ultrasound but based on light – which is increasingly used to identify various eye diseases, such as macular degeneration.
In the field of cancer diagnostics, several cutting-edge tools have paved the way for early diagnosis. One such detection method uses a fiber optic probe connected to a Raman spectrometer, which employs a machine learning algorithm to detect malignant tissue in real time, offering a faster alternative to biopsy. Companies dedicating resources to advanced diagnostics and NGS (Next-Generation Sequencing) include Roche, Illumina and Intuitive, which pioneered its Da Vinci surgical robot more than 20 years ago.
Future cancer diagnostics are likely to continue to evolve towards more personalized and precise approaches, including the integration of advanced technologies such as liquid biopsies for detecting circulating tumor DNA, single cell analysis techniques, and AI-based predictive models . These methods aim to improve early diagnosis, monitoring response to treatment, identification of drug-resistant mutations, and development of therapeutic strategies tailored to individual patients, ultimately improving cancer management and outcomes.
Next-generation sequencing for cancer diagnostics involves extracting DNA or RNA from a tumor sample, which is then fragmented, amplified and sequenced to identify genetic mutations and alterations associated with the development of cancer.
Related: 9 Huge Healthcare Opportunities for Tech-Focused Entrepreneurs
The personal touch
The advent of genetic mapping has opened the door to new drugs and therapies tailored to individuals. With the help of DNA analysis, a doctor can determine the best drug to treat a specific condition. Many companies are now exploring new ways to produce drugs, including 3D printer technology. The benefits for patients are numerous: precise dosages, targeted drug release and unique shapes and sizes to facilitate swallowing.
In addition to genomics and genetic testing, molecular diagnostics, liquid biopsies and pharmacogenomics, high-resolution imaging technologies, such as MRI, CT, PET and molecular imaging techniques, also help improve disease diagnosis, planning of treatment and response evaluation in personalized medicine.
All the major players in the pharmaceutical industry are jumping on the personalized medicine bandwagon, including Roche, Novartis, Pfizer, AstraZeneca, BMS, and Merck, to name a few.
Because there are uncertainties in any market, even those poised for growth, it is critical that investors do their research. This strategy could mean the difference between a company holding on for dear life to a metaphorical, frenetic rafting trip down a raging river or avoiding heavy rolls on a cruise ship en route to the next port of call: back on the ‘investment.